Three stocks namely Galaxy Surfactants, CE Infosystems (MapmyIndia) and Power Finance Corporation have been buzzing of late. Rohan Shah, Head, Technical Research, Stoxbox, has a ‘Buy’ on Power Finance Corporation, a ‘Hold’ on CE Infosystems and a ‘Sell’ on Galaxy Surfactants. Below are his trading strategies for the three stocks:
The stock saw a strong and steady upmove between March 2020 and September 2021, where its price accelerated to Rs 3,500 level from Rs 1,000 level. Post hitting a life high of around Rs 3,500, the stock turned into hibernation mode, where it horizontal band of Rs 3,500 -Rs 2,700 level. In December, it witnessed a breakdown from the mentioned range on the downside, sending bearish signals.
From the price pattern point of view, chart shows a breakdown from bearish Double Top pattern, which is basically considered a bearish reversal pattern in nature. Hence if the pattern unfolds on the expected lines, the stock is likely to remain under pressure and head lower towards Rs 2,230-2,050 levels. On the flip side, intermediate resistance is placed at Rs 2,550-2,650 levels.
The stock topped out in the fourth week after listing and since then stock has been consistently under pressure, dropping from Rs 1,917 to Rs 1,022. The stock is currently trading at all-time low levels Rs 1,022 which coincides with 127.2 per cent external retracement level. Hence, if this support is held well, we shall witness an oversold bounce towards Rs 1,080-1,125. The selling pressure may continue on a decisive breakdown from the same, dragging the stock lower towards Rs 955. A break below this level will open the way for Rs 875.
The stock witnessed sharp surge in price in the last three months, where it moved from Rs 100 to Rs 150-plus levels. But it has hit a multi-year supply zone of Rs 155-165
On the monthly chart, the stock price has been trading in the tight range of Rs 160-Rs 75 level since November 2014. One must be cautious at this level and avoid building fresh position at the current juncture. A failure to breakout from the mentioned range would attract profit booking dragging price lower.
On the lower side, a support is placed around Rs 148-140 level. A decisive breakout from the same would provide a bullish signal for medium term trend. Post such breakout, Rs 180 could be the potential level to watch out for.